The property market hits a purple patch.

2021 has started with a bang in the Real Estate market, right across the East Coast of Australia. Some analysts are describing the current Real Estate environment as “a perfect storm”.

NGFarah sold over $100Mil worth of Real Estate in February, which is a record for the companys’ residential sales department. In Sydney, auction clearance rates are exceeding 90% and here at NGFarah, in February, our auction clearance rate was a staggering 98%.

What we are noticing is that properties are selling for more than our clients' expectations. We are also noticing, at auctions, that there are up to 15 – 20 registered bidders on one property at a time, which is a little alarming especially if you are a buyer trying to secure a property in Sydney’s Eastern Suburbs.

Covid-19 has had a positive effect on the property market. People are putting more value on their homes because of Covid-19. There are some other reasons the market is strong and they are as follows;

-Banks are enticing their customers with 4 or 5 year fixed loan periods at under 2%. This is insanely low and fuelling confidence in the Property Market.

-The fact that there are so many expats who want to move back to Australia from countries like the US, UK, Hong Kong, and South Africa is also driving the market and a lot of these expats are very keen to buy property on their return to Australia. 

There is a shortage of properties for sale, as homeowners are concerned about selling their property first in a rising market. This is compounding the problem, which is making it very challenging for home buyers, yet in a positive way, this is very appealing for home sellers, as many of our clients are selling their properties for well over their expectations. 

Of the $102Mil worth of sales in February – a property at 163 Coogee Bay Road sold for $5,555,000 - $1,000,000 over reserve. A property at 25 Myanua Dover Heights sold for $3.5 Mil – $700,000 over reserve and a property at 8 Clisby Way, Matraville sold for $2,175,000, a record for a duplex and $325,000 over reserve price.

Westpac are predicting the property market will rise 20% over the next 2 years.

On current statistics and current numbers coming through open houses, we believe this to be accurate and could exceed this level, should the market continue its current frenzy state.

In March, NGFarah has listed over 40 properties for auction, which means there is a good choice of properties coming to market which will inspire more buyers to attend open homes and focus on securing a property on or before the auction day.

If you are thinking of selling your property, the environment is perfect.

The market has risen by at least 10% in the last 6 months and buyers are feeling the desperation of a booming market.